On August 23^rd, Blaine’s Assistant Port Director published a "Headquarters Memo" in response to our inquiry to the Office of Rulings and Regulations - of their acceptance of the Nissho-Iwai/McAfee decision pertaining to "Valuations Based on Multi-tiered Sales".

Their "Internal Advisory – Headquarters Memo", indicates acceptance on a case by case basis, subject to qualifications, (provided in our July 29^th Trade Notice), with the verification of value based on the first sale and fixing of final value upon liquidation - the responsibility of the U.S. Customs Field Import Specialist at the Port of Entry.

Use of "Edge-glued Lumber" heading 4418.90.2000 is being rejected when the material, in its condition as imported, does not constitute, in Customs’ determination - "builders’ joinery or carpentry of wood". It is their position that simple "edge-gluing" of two 2"x2"’s to effect a single 4"x4" piece of lumber does not qualify under the superior heading of "builders’ joinery or carpentry of wood" – that in order to qualify, even when edge-glued, the ends must be processed in a manner indicative of its use as builder’s joinery or carpentry of wood. Without such "dedication", GRI provisions dictate entry under "articles of wood" heading 4421.90.9740.

Our initial concern was that this was simply another blatant attempt to bring this material into the scope of the CVD/ADD case. However, review of the "named exemptions" provides for "Edge-glued Lumber" properly classified under the original "2001" heading of 4421.90.9840, which has been revised to 4421.909740. Please revise your U.S. Customs invoices accordingly.

Although Customs "Informed Compliance Notice" states that heading 4418.90.2000 "is an empty provision", we would challenge their disallowance of this heading with regard to angle end-cut edge-glued lumber or other legitimate end-worked edge-glued lumber. In these instances the material qualifies as builder’s joinery or carpentry of wood AND is edge-glued.

Sincerely,

Michael D. Jones, President